- Los Cerros (LCL) has placed its shares in a trading halt as it gets ready to carry out a capital raising venture
- Shares in LCL will remain locked up until September 16, at which point the company is expected to announce the full details of the fundraise
- While it hasn’t announced how much it’s raising, the company did reveal it plans to pay off an existing debt
- Los Cerros has worked out an agreement with FirstRand Investment to pay $2.21 million to extinguish the debt
- The company will also use the fundraise to further sustain multi-rig diamond drilling at the Quinchia Gold Project
- Shares in LCL last traded for 14.5 cents each
Exploration and mining company Los Cerros (LCL) has locked up its shares in a trading halt as it gets ready to carry out a capital raising venture.
The trading halt will remain in place until Wednesday, September 16, at which point the company is expected to announce the full details of the raise.
While it’s not known how much Los Cerros plans to raise, the company has revealed it will put the funds towards paying off an existing debt.
LCL would have owed around $3.5 million, but instead inked a deal with FirstRand Investment to make a one-off discounted $2.21 million payment to extinguish the debt.
The debt relates to the company’s Quinchia Gold Project in Colombia, which LCL acquired way back in 2016.
Additionally, FirstRand has also agreed to lower any potential future royalty payments from Quinchia — from $15 million to $14 million.
Speaking on the reductions, Los Cerros’ Managing Director Jason Stirbinskis said he was pleased with the agreement.
“We extend our sincere gratitude to RMB for their support and flexibility in a formative period for the company which will enable Los Cerros to emerge in a robust financial position,” he said.
Los Cerros also confirmed it will use the planned capital raise to further sustain multi-rig diamond drilling at the Gold Project.
“We look forward to concluding our current capital raising to settle the proposed RMB transaction within the coming few days and continuing with our diamond drilling,” Jason added.
Shares in Los Cerros will remain locked up for the next two days, with the stock previously trading for 14.5 cents each on Friday, September 11.